Deutsche Bank flags CEO transition; DBS cites new competition from Zydus
The Wall Street Journal’s Aug. 21 health-care market-talk roundup featured two downgrades from buy to hold, each tied to a distinct set of risks.
Deutsche Bank analyst Falko Friedrichs downgraded Straumann, the Swiss dental-implant manufacturer, citing four factors that he said could weigh on market sentiment and lead to a period of share-price consolidation. In a note timed at 0337 ET, Friedrichs said persistent high inflation and high interest rates could weigh on customer demand, and pointed to a potential slowdown in China. He also flagged an unexpected CEO transition, which occurred shortly after the company provided its new medium-term strategy, as an additional concern.
Deutsche Bank cut its target price on the stock to 99 Swiss francs from 119 francs. Straumann shares were down 4% at 92.2 francs.
Separately, DBS Group Research analyst Amanda Tan downgraded UltraGreen.ai, a maker of indocyanine green products, citing new competition in a research note timed at 0228 ET. Tan noted that Zydus Lifesciences can launch its generic indocyanine green product following approval by the U.S. Food and Drug Administration. Provepharm has already launched its “Zyogreen” product in the U.K. and is targeting further geographic expansion in the U.S., the analyst added.
The entry of two rivals “suggests barriers to entry into indocyanine green products which UltraGreen.ai manufactures are less prohibitive than previously assumed,” Tan said. DBS lowered its target price to $0.80 from $1.95. UltraGreen.ai shares were 7.4% lower at $0.69.
Both notes were published exclusively on Dow Jones Newswires.